Independent financial advisors - Spain/UK

Barbumbrella

Hi,
Just wondering if anyone has any independent financial advisor recommendations please?  I need someone who can advise on tax, savings and pensions and who knows the UK and Spanish tax rules and regulations.  I've found The Spectrum IFA Group who sound like they could help but I can't see any independent reviews bar one (negative).  If anyone knows of this company or any others please let me know.  
Thank you

dunstonh

If you return to the UK, then all IFAs can deal with you (subject to their own preferences).  If you do not return to the UK, then only adviser firms that hold advice authorisations in Spain (or passporting permission from another member state in the EU) can deal with you.    

I mention "subject to their own preferences" as a compliance company once said just because you can do it doesn't mean you should. i.e. unless you know the products, taxation and laws of the country the person is resident in, how can you really give them best advice.   

That probably means you are stuck with using an expat focused firm and typically the larger ones don't have the best reputation. Often because they don't work to UK standards but local standards and in some countries, products are on part with those last seen in the UK in the 1980s before things got better here.    However, an EU country works to similar rules as the UK.  So, in reality, you should be less concerned about quality than compared to if you were resident in the Middle East or Asia.  Locations where failed advisers go because standards are so low.   

Do you know any other expats that use advisers?

Barbumbrella

Thanks for your response.  I am about to go and join my husband in Spain.  I am trying to find out what's the best solution for our savings, assets etc before I go.  I've been reading up about it and it seems we should get things in order before we move over there.  Don't really know any expats yet so just trying to find info via the internet.

Sunnylifeover50plan

Blevin Franks might be worth a google. I've not used them.

Barbumbrella

Thanks, though I've seen some bad reviews for them.

bostonerimus

If you are going to be resident in Spain take a look at the UK/Spain Double Tax Treaty. You will probably be paying most tax to Spain and will have to itemize your UK based assets and pay tax on ISAs (not recognized by Spain) and Spanish income tax on most UK pensions. It is important that you get things like pension payments to Spanish accounts sorted out before you become a UK non-resident and understand how your UK account administrators will deal with you as a non-UK resident. An online transfer service like "Wise" might be a helpful tool.

nigelbb

Sunnylifeover50plan said:

Barbumbrella said:

Thanks, though I've seen some bad reviews for them.

We've been in Spain for 23 months. We have a local tax advisor. The Spanish tax year runs from 1st Jan to 31st December. CGT is the bogeyman here and as such you should make sure you realise assets in the tax year prior to becoming tax resident in Spain.

Thereafter they have an annual wealth tax, modelo 720, rates for which differ between the provinces along with monetary starting points. Pension assets don't normally attract wealth tax unless it's a SIPP or DC pot and you are over the age at which you can draw upon it. There's always annual income tax as well, modelo 100, with personal allowances far lower than the UK. Tax is payable a year in arrears.

If you don't trust the likes of Blevin Franks then you are better at trying to find a good local tax advisor in the region you are looking to move to. My old UK financial advisor was clueless when it came to Spain but that's only to be expected.

Double taxation treaty means that Spain won't come after you for tax you've already paid in the UK but they will seek the excess from you based on their tax regime.

If your husband is already in Spain he should have some local knowledge of advisors. Just be cautious around joint assets if the Spanish hacienda considers your husband's economic interests and taxation to be Spanish given he is likely already tax resident there.

The above is not advice but instead my opinion based on personal experience.

Although other advisors exist we use a company called Abaco advisors their website has some useful guides. If linking the website breaks rules my apologies https://www.abacoadvisers.com/ 

The double taxation treaty (DTT) isn't as simple as Spain not coming after you for tax you've already paid in the UK nor will they necessarily seek the excess from you based on their tax regime.

If you are tax resident in Spain some UK income is only ever taxed in Spain eg income from UK employment, state pension or private pension. Some UK income is only ever taxed in the UK eg government pensions, rental income from UK property. Capital gains on sales of shares & property in the UK can be taxed in both countries.

You need to consult the UK-Spain DTT for details

https://www.gov.uk/government/publications/spain-tax-treaties

Sunnylifeover50plan

@nigelbb

In fairness I removed my post from yesterday this morning. You must have been responding to me around the time I did this as your post wasn't visible at that time.

If you choose to keep your reply to me as it is, it's on the basis that I removed my own post to which you responded.

For us the truth remains that we take advice from local tax advisors in Spain and this works for us.

Barbumbrella

That's interesting thank you.  One of the issues is whether to sell my house in the UK prior to moving or rent it out.  If I sell now I won't have to pay CGT and if I rent it out I possibly have to pay tax on the rental income.  Plus worried about any savings I do have will be eaten up paying tax on any interest or dividends that the accounts may accrue even though I don't cash them in.  I definitely need professional advice on it all.  Thanks

nigelbb

Sunnylifeover50plan said:

@nigelbb

In fairness I removed my post from yesterday this morning. You must have been responding to me around the time I did this as your post wasn't visible at that time.

If you choose to keep your reply to me as it is, it's on the basis that I removed my own post to which you responded.

For us the truth remains that we take advice from local tax advisors in Spain and this works for us.

I don't know why you removed your post. There was misinformation regarding how the DTT works which is why I posted. I will leave my reply.

nigelbb

Barbumbrella said:

That's interesting thank you.  One of the issues is whether to sell my house in the UK prior to moving or rent it out.  If I sell now I won't have to pay CGT and if I rent it out I possibly have to pay tax on the rental income.  Plus worried about any savings I do have will be eaten up paying tax on any interest or dividends that the accounts may accrue even though I don't cash them in.  I definitely need professional advice on it all.  Thanks

I don't know the details of the UK-Spain DTT or Spanish local tax but generally there is a grace period allowing you to sell your primary residence after you have left the UK without paying CGT in either country. Typically this would be a year.